Bribery and Corruption

As businesses continue to expand globally into new and emerging markets, bribery and corruption risks have increased exponentially. Bribery and Corruption offers a comprehensive look at this growing problem, and at the Foreign Corrupt Practices Act (FCPA) and other international anti–bribery and corruption conventions. Presenting hypothetical examples of situations companies will face, along with practical solutions, the book offers detailed global guidance on a region and country–specific basis. The FCPA prohibits US companies and their subsidiaries from bribing foreign officials, either directly or indirectly through intermediaries, for the purpose of obtaining or retaining business. It also requires companies to keep accurate records of all business transactions and maintain an effective system of internal accounting controls. Internationally, the Organization of Economic Cooperation and Development′s (OECD′s) anti–bribery convention has been adopted by 38 countries and creates legally binding standards related to bribery of foreign public officials. Written by renowned accounting fraud experts Richard A. Sibery and Brian P. Loughman, and providing an introduction and overview of the Foreign Corrupt Practices Act (FCPA) and international bribery laws, Bribery and Corruption considers: How to conduct FCPA risk assessments and investigations How to consider FCPA specific financial controls How to implement an FCPA compliance program and how to measure FCPA compliance The risk of bribery and corruption continues to be an area of concern for companies around the world, but armed with Bribery and Corruption, it is easier than ever to understand the challenges that exist and how to deal with them.

Foreword xi Preface xiii Chapter 1: Introduction 1 Enforcement Trends 4 Anti–Corruption Compliance Programs 6 Remember the Purpose 6 Notes 7 Chapter 2: Overview of FCPA 9 Legislative History 11 Overview and Key FCPA Statutory Elements 12 Ancillary Statutes 22 Summary 25 Notes 25 Chapter 3: The U.K. Bribery Act and International Bribery and Corruption Initiatives 29 U.K. Bribery Act of 2010 30 Global Anti–Corruption Initiatives 34 Summary 42 Notes 43 Chapter 4: Compliance Programs 47 Goals of an Effective Anti–Corruption Compliance Program 48 Accepted Standards and Guidance 48 What Should an Anti–Corruption Program Include? 64 Summary 72 Notes 73 Chapter 5: Policies and Procedures 75 Bribery, Corruption, and Fraud Prevention Policies 76 Communication and Training 80 Internal Financial Controls 86 Summary 111 Notes 111 Chapter 6: Risk Assessments 113 Scoping the Risk Assessment 117 Conducting the Risk Assessment 120 Gap Analysis 125 Reporting 126 Documenting the Risk Assessment 127 Summary 127 Notes 127 Chapter 7: Monitoring 129 Building an Anti–Corruption Monitoring Program 130 Conducting the Anti–Corruption Compliance Audit 134 Reporting the Results 139 Audits of Agents/Intermediaries 141 Use of Data Analytics in Monitoring 142 Summary 151 Notes 151 Chapter 8: Anti–Corruption Due Diligence 153 Current Transaction Market Perspectives 154 The FCPA Due Diligence Regulatory Environment 157 Why Is Anti–Corruption Due Diligence Significant? 159 Unique Considerations of Anti–Corruption Due Diligence 163 What to Do When Violations Are Found During Anti–Corruption Due Diligence 173 Summary 174 Note 175 Chapter 9: Investigations 177 Trigger Events 178 Triage 180 Response 186 Remediation 222 Summary 224 Notes 224 Chapter 10: Regional Considerations for Bribery and Corruption Risks 225 Asia–Pacific 225 Europe 237 India and South Asia 251 Middle East 259 Africa 267 Latin America 274 Notes 286 Contributors 292 Chapter 11: Industry Considerations for Bribery and Corruption Risks 295 Aerospace and Defense 296 Automotive 304 Construction and Real Estate 311 Consumer Products 318 Diversified Industrial 323 Energy 328 Financial Services 335 Life Sciences 341 Media and Entertainment 348 Mining and Metals 354 Retail and Wholesale 361 Technology 366 Transportation 373 Notes 381 Contributors 383 Acknowledgments 387 About the Authors 389 About the Contributors 391 Index 395